Though you’re doing business for good, no one said it would be easy. Running a non-profit has its challenges.

I should know, I started Visualise in Motion (VIM) in 2020 and it has been one challenge after the other. I’ve bootstrapped the entire time. I self-funded the first programme ‘The Building Blocks Series‘ when we didn’t get the funding we applied for. I hate inaction and I figured a stripped down version was better than nothing at all. But today, I want to highlight 4 challenges I’ve experienced in this journey running a non-profit organisation.

Before I begin – it’s worth noting that VIM is a community interest company (CIC). A CIC is a special type of limited company which exists to benefit the community rather than private shareholders. Though we have more flexibility with how we operate as a business, our profits are reinvested back into the organisation rather than being distributed amongst shareholders. When doing our annual accounts with HMRC, we also have to fill in a CIC34 Form which is a report on the impact we’ve had in the last year.

1. Most funders don’t support solopreneurs leading non-profit organisations. The majority require multiple signatories, a board of trustees, etc.

If you’re a going at this alone, the third sector isn’t as encouraging of solopreneurs as other types of businesses are. In most cases, you’re actually penalised for it. A requirement on most grant applications is needing to have at least 2 directors (or 2 people on the management team) and a board of trustees.

2. The information around developing a board is sparse at best, and jargonistic at worst.

Taking point 1 into consideration, you might be asking yourself “how do I develop a board of trustees?” – unfortunately, there isn’t an easy way to do it. I’m yet to find a database of people who are interested in being on boards of non-profits. Or a database that has a clear indication of the types of causes they are interested in. I actually want to build this (stay tuned), but if you know platforms that do this already, please do share them with me. I came across Trustees Unlimited which might be a good place to start. Prices start at £99 for organisations with up £100k in gross annual income. I’ve shared some information in the further reading section down below of resources that might be helpful to you if you’re thinking of recruiting trustees.

3. Business types that don’t require boards of trustees have to reconsider how they run their business. If not, they run the risk of being unable to engage with funders at all.

This is a hard conversation to have with yourself. You either have to change the way you operate your business, or walk away from funding opportunities that could help you have more impact. I’m now considering what a board for VIM might look like. I’m thinking about the recruitment process. I’m considering the added administration of managing a board, etc. To be clear, I do at some point want a board of trustees, they are incredibly valuable (when picked right) to an organisation. I just didn’t think I would have to do so so soon. In fact, this was one of the pros of going down the CIC route for me. In any case, the ideal scenario would be to get to a place where we are self-sufficient and don’t need grants and public funding to operate (can I get an amen?).

4. Most funders don’t accept digital first bank accounts such as Monzo and Starling.

A read a story about a fellow CIC losing funding because they banked with Starling bank last summer. It was heartbreaking. I understand how much effort went into the application. The funders obviously saw that too, so for the funding to be pulled, I can only imagine what that felt like.

It’s worth noting that most high street/traditional banks were not allowing people to open new accounts during the height of the pandemic. I went with Starling for VIM (and Dolce Butter) simply because I had no other option. Though, even if I did have options, funders need to be clearer about why this rule exists.

To me, it’s another reminder that the third sector seems to refuse to step into the 21st century.

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And there you have it. This is by no means an exhaustive list of issues facing small non-profit organisations. But it is my personal list, certainly the ones causing me the most difficulty right now.

Questions for you

• Do you run a small non-profit organisation?
• What issues have you experienced?
• How have you worked through them?

Drop me an email on fiona@visualiseinmotion.com – I want to know your answers to the above (and if you have any tips you can share, I’m all ears).

Further Reading

• Governance and Trustees: https://www.ncvo.org.uk/practical-support/information/governance
• Recruiting and Inducting Trustees: https://knowhow.ncvo.org.uk/governance/improving-your-governance-practice/trustee-recruitment-and-induction
• Banking for Charities: https://www.ndcs.org.uk/media/2083/bba_charity_banking_guide_ae250.pdf
• Finding the Right Board Members for your Nonprofit: https://www.councilofnonprofits.org/tools-resources/finding-the-right-board-members-your-nonprofit
• 10 Ways to Find Board Members for a Non-Profit Organization: https://www.boardeffect.com/blog/10-ways-to-find-board-members-for-a-non-profit/
• Getting On Board: https://www.gettingonboard.org/
• Help Run a Charity: https://www.gov.uk/government/get-involved/take-part/help-run-a-charity